Challenger in favour of proposed credit legislation changes

by BN23 Sep 2009

Challenger Mortgage Management has welcomed the deletion of the proposed section 130 (3) of the National Credit Protection Bill.

The deleted section had sought to permit lenders to rely on information gathered by brokers or mortgage managers instead of verifying borrower information themselves.

"While brokers and mortgage managers must make reasonable enquiry and verification, the ultimate responsibility must always lie with lenders because of their exposure to any default risk," said Steve Weston Challenger's general manager, distribution - broker platforms and lending.

The mortgage manager has long advocated that the section to be removed.

In addition, Weston said he was pleased the new laws had been deferred to July 2010 as it provided brokers and mortgage managers with "more time to prepare". 

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